Reborn not to be a simp, the school beauty's whole family goes crazy
Chapter 538 Malicious Competition
"The employees are still being paid their full wages, and the profits are almost gone. If this continues, I really don't know how much longer this store can survive."
As Chen Xiumei spoke, her voice choked with emotion, her face filled with anxiety and helplessness.
Chen Dong took the ledger, his brows furrowed, and carefully flipped through each page, occasionally tapping the table lightly with his fingers as he fell into deep thought.
After a while, he looked up and said with a serious expression, "Sister, I think the root of the problem lies in cost control and customer positioning. Some of the dishes on our previous menu had high costs but average sales. For example, those imported seafood dishes were expensive, and few people ordered them, but they tied up a lot of capital and lowered the overall profit."
"Moreover, we have always focused on mid-to-high-end consumption, and our environment and services are all in line with this standard. But now our competitors are attracting a large number of ordinary consumers with low prices, which makes our customer positioning seem a bit narrow and keeps a large number of customers who pursue cost-effectiveness away."
Chen Xiumei nodded thoughtfully and said, "Now that you mention it, it seems to make sense. We used to think that focusing on the mid-to-high-end market would yield higher profits, but now it seems that market competition is too fierce, and relying solely on this segment of customers isn't enough. So what should we do?"
After a moment's thought, Chen Dong said, "We need to readjust the menu. We need to cut down on those high-cost, low-volume dishes and add some affordable, popular home-style dishes. For example, potatoes, cabbage, and tofu are affordable, loved by every household, and can be paired with different hot pot bases."
"Moreover, we can cut the potatoes into different shapes, such as potato slices and potato shreds, to add some variety. Cabbage can be used as a hot pot ingredient or eaten cold. There are also many ways to cook tofu. Soft tofu is suitable for direct hot pot, while firm tofu can be pan-fried before being added. This not only enriches the dishes but also meets the taste needs of different customers."
Chen Xiumei said worriedly, "I'm afraid customers will think we've lowered our standards and won't want to come anymore. After all, we've always been positioned as a mid-to-high-end restaurant, and suddenly adding so many affordable dishes might not be acceptable to our regular customers."
Chen Dong explained with a smile, "Sister, we're not lowering our standards, but rather expanding our customer base. We'll retain our mid-to-high-end dishes, such as premium beef and lamb, and specialty seafood, which are still our signature items. At the same time, we'll add more affordable dishes to meet the needs of different consumer levels."
"We maintain high standards in our environment and service so that new customers can be attracted by the prices, while existing customers can continue to enjoy a high-quality experience. Moreover, we need to focus on our unique services so that customers feel that dining here is not just about the taste, but also about enjoying a different experience that sets us apart from other hot pot restaurants."
Over the next few days, Chen Dong began to work on optimizing procurement channels.
He took Chen Xiumei with him and rode a slightly worn motorcycle to visit suppliers one by one.
The streets of Nanjiang are not wide, and there are various shops on both sides, selling hardware and sundries, fabrics and clothes, and fruits and vegetables. People come and go, making it a lively and bustling place.
They arrived at a supplier warehouse that mainly supplied meat, located on the edge of the city and surrounded by piles of miscellaneous items.
Inside the warehouse, various types of meat were neatly arranged, including pork, beef, and mutton, each categorized separately.
Looking at the meat products, Chen Dong said to Mr. Zhang, who was standing to the side, "Mr. Zhang, Haidilao has always been one of your major clients. Over the years, we've had a very good relationship. But now we're facing some difficulties. As you know, the market is very competitive, and some new hot pot restaurants are maliciously lowering their prices, which has taken away a lot of our business."
"Could you give us a better price? We guarantee that our purchase volume will only increase, and as long as the price is right, long-term cooperation is definitely not a problem."
Mr. Zhang, wearing a dirty apron, looked troubled: "Mr. Chen, my price is already very reasonable. Everything is going up in price these days. Feed prices have gone up, and transportation costs are higher. I'm just a small business, and I don't make much money. The price I'm offering you is the lowest in this area."
Chen Dong calmly replied, "Mr. Zhang, as you can see, we plan to cooperate long-term, and our purchase volume will definitely increase in the future. Moreover, we can pay part of the payment in advance to ease your financial pressure and make it more convenient for you to purchase goods. As long as the price is right, we can also help you promote the business and introduce other customers."
"You know how famous Haidilao is in Nanjiang. If we help you promote it, your business will definitely be even better."
Mr. Zhang hesitated for a moment, scratched his head, and said, "Mr. Chen, the conditions you mentioned are indeed very tempting, but I also have to consider the costs. How about this, I'll lower the price a little more, I'll give you a discount of three cents per pound of meat, I really can't do any more than that."
Chen Dong said with a smile, "Boss Zhang, three cents is indeed a bit too little. Could you add a little more? Let's compromise and make it five cents cheaper per pound. That way, our pressure will be less. Don't worry, I'll definitely think of you first when I have business in the future."
After pondering for a while, Mr. Zhang finally relented: "Alright, considering our years of cooperation, I'll give you a discount of 50 cents per pound. However, Mr. Chen, the price can't be lowered any further; next time you buy, it will be at this price."
As Chen Xiumei left the supplier's shop, she said excitedly, "Dongzi, thanks to you, we can save a lot of money this time. It's 50 cents cheaper per pound. We buy so much meat every month, and this will save us a lot of costs."
Chen Dong said with a smile, "This is just the first step. We also need to have a good talk with other suppliers. We need to try to get them to lower their prices for vegetables and seasonings. Little by little, the cost can be reduced significantly."
At the same time, Chen Dong began planning special services.
He convened a meeting with all the employees in the store's lobby, where they stood or sat around Chen Dong.
Chen Dong cleared his throat and said, "As everyone knows, the store is currently facing difficulties, and we need to find a way to attract customers back. I plan to launch a new service—free nail services for customers."
The employees started discussing it after hearing this.
A young waitress, dressed in a simple uniform and with her hair in a ponytail, asked curiously, "Boss Chen, why do you offer nail services? What does that have to do with eating hot pot? It doesn't seem to have anything to do with it."
Chen Dong patiently explained, "Many of our customers are young people, especially girls. Eating hot pot takes a long time, and sometimes the waiting time in line is also quite long. If they can get a manicure while waiting, it can both pass the time and make them feel novel and interesting."
"Getting a manicure outside isn't cheap these days, so we're offering it for free."
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